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IPO could value Quadrant-backed Virtus Health at $712m

15 Apr 2013

Private equity-backed Australian fertility business Virtus Health is reportedly preparing for an IPO that could value it at A$682m ($712m).

The company’s advisers Morgan Stanley and UBS are expected to start formally gauging institutional demand on May 16, said the Wall Street Journal, citing people with knowledge of the process.

Virtus will offer A$300m worth of equity to new investors, according to a source.

The total valuation of A$682m includes net debt of around A$140m, according to pre-marketing material from Morgan Stanley seen by the Wall Street Journal.

Virtus, which is 43 per cent owned by Quadrant Private Equity, is one of the biggest players in the Australian market with 34 fertility clinics, six day hospitals and 39 laboratories across the country.

It currently holds a third of the market for in-vitro fertilisation, according to the report, which also noted that the specialist nature of such treatment makes it difficult for new players to enter the market.

Virtus is expected to post an EBITDA of $60m this year, up from more than A$50m in 2012, said Deal Journal Australia.